Technical Analysis – GBPJPY re-challenges rising trend line; broader trend is bullish

GBPJPY is posting an aggressive bearish session over the last few hours after two bullish candles in a row, in the 4-hour chart. In a longer-timeframe, the price edged sharply lower following the pullback on the 153.80 resistance level. The short-term technical indicators are bearish and point to more weakness in the market.

Looking at the 4-hour chart, prices are looking capped by the 20 and 40-period moving averages which are negatively aligned after a bearish crossover that took place during Asia’s session. The RSI indicator is moving south, approaching the negative threshold of 30, while the MACD oscillator is falling below the trigger and zero lines.

Should price continue the bearish bias, the next significant area to have in mind is the 150.60 – 150.90 support zone. These levels are standing near the short-term ascending trend line, which has been holding since March 2. In case of a dive below the diagonal line, this would increase bearish pressures and positive bias could shift to negative until the 149.40 support.

On the flip side, a possible scenario is a rebound from the rising trend line and the resumption of an upward movement once again. A strong resistance level to watch is the 152.00 handle, while above that, the next major resistance is near the bearish cross within the moving averages around 152.60.